AIR

A month has gone by since the last earnings report for Teledyne Technologies (TDY). Shares have lost about 2.7% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Teledyne due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Teledyne's Q2 Earnings & Revenues Beat Estimates, '26 EPS View RaisedTeledyne Technologies Inc. reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.Including one-time items, the company recorded GAAP earnings of $5.37 per share, up 21.6% from the prior-year period’s earnings of $4.43.The year-over-year improvement in the bottom line can be attributed to higher net sales and operating income in the second quarter than the year-ago quarter’s reported actuals. Total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter. This improvement was driven by higher year-over-year sales across all business segments. Instrumentation: Sales in this segment increased 5.5% year over year to $387.8 million, driven by higher sales of marine instrumentation, primarily due to stronger offshore energy and defense markets.The adjusted operating income declined 0.1% year over year to $104.8 million.Digital Imaging: Quarterly sales in this division increased 12.7% year over year to $868.7 million. The segment benefited from higher sales of infrared imaging detectors, components and subsystems for defense and commercial applications. Surveillance systems, industrial and scientific imaging systems, and X-ray products also contributed to the growth.The adjusted operating income rose 31.2% year over year to $217.6 million.Aerospace and Defense Electronics: Sales in this segment totaled $286.4 million, up 8.2% from the prior-year quarter. The improvement was driven by higher sales of defense electronics and aerospace electronics.The adjusted operating income increased 8.6% year over year to $79.7 million.Engineered Systems: Revenues in this division jumped 8.4% year over year to $119.6 million due to higher sales of engineered products and energy systems.This segment's operating income rose 24.8% to $15.1 million. Teledyne’s cash and cash equivalents totaled $340.1 million as of June 28, 2026 compared with $352.4 million as of Dec. 28, 2025.Its long-term debt was $2.027 billion at the end of the second quarter of 2026 compared with $2.025 billion as of Dec. 28, 2025.Cash flow from operating activities totaled $315.2 million during the first six months of 2026 compared with $226.6 million in the same period last year.TDY generated free cash flow of $284.7 million, up from $196.3 million in the prior-year quarter. For the third quarter of 2026, Teledyne expects adjusted earnings between $6.05 and $6.15 per share. The Zacks Consensus Estimate for TDY’s third-quarter earnings is pegged at $5.90, which is lower than the company's guided range.For full-year 2026, Teledyne raised its adjusted earnings outlook to $24.45-$24.65 per share from the previous range of $23.85-$24.15. The Zacks Consensus Estimate for earnings is pegged at $24.10, which is lower than the company's guided range. In the past month, investors have witnessed a upward trend in fresh estimates. Currently, Teledyne has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Teledyne has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Teledyne belongs to the Zacks Aerospace - Defense Equipment industry. Another stock from the same industry, AAR (AIR), has gained 2.3% over the past month. More than a month has passed since the company reported results for the quarter ended May 2026. AAR reported revenues of $928 million in the last reported quarter, representing a year-over-year change of +23%. EPS of $1.53 for the same period compares with $1.16 a year ago. AAR is expected to post break-even earnings per share for the current quarter, representing a year-over-year change of 0%. Over the last 30 days, the Zacks Consensus Estimate has changed 0%. AAR has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report AAR Corp. (AIR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the aerospace industry, including AAR (NYSE:AIR) and its peers. Aerospace companies often possess technical expertise and have made significant capital investments to produce complex products. It is an industry where innovation is important, and lately, emissions and automation are in focus, so companies that boast advances in these areas can take market share. On the other hand, demand for aerospace products can ebb and flow with economic cycles and geopolitical tensions, which can be particularly painful for companies with high fixed costs. The 14 aerospace stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was 5.5% above. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. The first third-party MRO approved by the FAA for Safety Management System Requirements, AAR (NYSE:AIR) is a provider of aircraft maintenance services AAR reported revenues of $928 million, up 26.1% year on year. This print exceeded analysts’ expectations by 3.9%. Overall, it was an exceptional quarter for the company with revenue guidance for next quarter beating analysts’ expectations and a solid beat of analysts’ EBITDA estimates. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 1.2% since reporting and currently trades at $139.77. We think AAR is a good business, but is it a buy today? Read our full report here, it’s free. Integrating power outlets into many Boeing aircraft, Astronics (NASDAQ:ATRO) is a provider of technologies and services to the global aerospace, defense, and electronics industries. Astronics reported revenues of $260 million, up 27% year on year, outperforming analysts’ expectations by 6%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates and full-year revenue guidance exceeding analysts’ expectations. Astronics achieved the highest full-year guidance raise in the group. The market seems happy with the results as the stock is up 9.5% since reporting. It currently trades at $82.00. Is now the time to buy Astronics? Access our full analysis of the earnings results here, it’s free. Providing a one-stop shop that integrates multiple services and product offerings, AerSale (NASDAQ:ASLE) delivers full-service support to mid-life commercial aircraft. AerSale reported revenues of $70.93 million, down 33.9% year on year, falling short of analysts’ expectations by 12.7%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates. AerSale delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. As expected, the stock is down 8.4% since the results and currently trades at $5.77. Read our full analysis of AerSale’s results here. One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE:BA) develops, manufactures, and services commercial airplanes, defense products, and space systems. Boeing reported revenues of $24.56 billion, up 8% year on year. This result surpassed analysts’ expectations by 1.7%. Aside from that, it was a slower quarter as it recorded a significant miss of analysts’ EPS estimates. The stock is up 5.2% since reporting and currently trades at $222.44. Read our full, actionable report on Boeing here, it’s free. Based in Jacksonville, Florida, Redwire (NYSE:RDW) is a provider of systems and components used in space infrastructure. Redwire reported revenues of $117.1 million, up 89.6% year on year. This print topped analysts’ expectations by 8.7%. It was a strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and full-year revenue guidance slightly topping analysts’ expectations. Redwire delivered the biggest analyst estimate beat and fastest revenue growth among its peers. The stock is up 16.2% since reporting and currently trades at $12.46. Read our full, actionable report on Redwire here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

It has been about a month since the last earnings report for AAR (AIR). Shares have added about 9.1% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is AAR due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for AAR Corp. before we dive into how investors and analysts have reacted as of late. AAR Q4 Earnings Surpass Estimates, Sales Rise Year Over YearAAR Corp. reported fourth-quarter fiscal 2026 adjusted earnings of $1.53 per share, which topped the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line also improved 31.9% from the year-ago quarter’s level of $1.16.The company reported GAAP earnings of $1.27 per share compared with 95 cents in the prior-year quarter.The year-over-year improvement in the bottom line can be attributed to strong sales growth.AIR reported fiscal 2026 adjusted earnings of $5.05 per share, which were higher than the year-ago figure of $3.91, reflecting the impact of improved operating efficiency on higher sales volumes. In the quarter under review, AAR generated net sales of $928 million. The reported figure beat the Zacks Consensus Estimate of $892 million by 4%. The figure also increased 23% from $754.5 million recorded in the year-ago quarter.The year-over-year improvement can be attributed to the double-digit growth across new parts Distribution within the company's Parts Supply segment and the impact of AIR’s acquisitions of HAECO Americas and ADI.The company reported total revenues of $3.31 billion in fiscal 2026, which were higher than $2.78 billion in fiscal 2025. Parts Supply sales surged 38.7% to $423.8 million from $305.5 million in the prior-year quarter. Organic growth in new-parts distribution was 19%, with commercial distribution rising 28% organically and government distribution increasing 7%.Repair, Engineering and Software sales jumped 35.1% to $314.4 million. Growth reflected the HAECO Americas acquisition, record component maintenance sales, higher airframe maintenance volumes and capacity, and increased recurring revenues at Trax.Government Solutions sales declined 8% to $130.2 million due to lower activity under the Worldwide Aviation Support Services program.Legacy Commercial Programs recorded sales of $59.6 million, down 20.3% year over year. AIR’s adjusted operating income increased 27.4% to $98 million, while adjusted operating margin improved 10 basis points to 10.6%.Selling, general and administrative expenses amounted to $99.6 million compared with $77.4 million a year ago.Net interest expenses for the quarter totaled $16.3 million compared with $18.4 million in the year-ago period. As of May 31, 2026, AAR’s cash and cash equivalents amounted to $84 million compared with $96.5 million as of May 31, 2025.The company’s long-term debt totaled $893.9 million as of May 31, 2026, down from $968 million as of May 31, 2025.In fiscal 2026, net cash provided from operating activities was $98.7 million compared with net cash flow of $36.1 million in the year-ago period. Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions. At this time, AAR has a average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. AAR has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AAR Corp. (AIR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Mercury Systems MRCY reported adjusted earnings of 37 cents per share for the fourth quarter of fiscal 2026, in line with the Zacks Consensus Estimate. Adjusted earnings declined 21.3% year over year from 47 cents. Revenues of $289.78 million increased 6.1% year over year and beat the Zacks Consensus Estimate by 9.37%.The revenue performance was supported by record bookings and continued production ramp-up. Total bookings reached $660 million, up 93.1% year over year, while the book-to-bill ratio stood at 2.28. The strong order activity pushed backlog above $1.9 billion. The fourth-quarter booking performance was broad-based across common processing architecture, effectors, airborne applications, space and missile defense. MRCY also posted its largest quarter ever for common processing architecture bookings, reflecting stronger activity as programs move toward production.The company also secured a significant multiyear booking related to memory requirements for advanced defense platforms. Management said the customer is seeking to secure supply early, reflecting demand tied to future production needs. Mercury Systems Inc price-consensus-eps-surprise-chart | Mercury Systems Inc Quote Revenue growth was driven by higher activity across the portfolio and increased production volumes. Overtime revenues rose 23.6% year over year, reaching its highest level in 15 quarters, with management linking the increase largely to improved material availability.Domestic revenues, which represented approximately 85.8% of fiscal 2026 revenues, grew 13% organically year over year. Mercury Systems is also expanding capacity, automation and factory operations to support programs transitioning to higher-volume production. Gross margin was 30.6%, down from 31% in the prior-year quarter. Management attributed the pressure primarily to program mix and approximately $4 million of higher net estimated-at-completion change impacts.Operating expenses increased approximately $13 million year over year. Selling, general and administrative expenses rose about $10 million, while research and development costs increased roughly $4 million, with compensation-related costs, including stock-based compensation, driving much of the increase.Adjusted EBITDA was $48.52 million, down from $51.27 million a year earlier, while adjusted EBITDA margin contracted to 16.7% from 18.8%. The company expects margins to improve as lower-margin legacy backlog is converted and newer bookings carry margins closer to its target profile. MRCY is pursuing factory optimization initiatives to improve scalability and execution as production volumes rise. These efforts include capacity expansion, increased automation and consolidation of subscale sites.Mercury Systems also entered a strategic agreement with Palantir to use artificial intelligence software for material planning and factory operations. Management expects the effort to help improve backlog conversion and delivery performance, although the fiscal 2027 outlook excludes any benefit from the partnership. Cash flows from operating activities increased 10.7% year over year to $42.15 million, while free cash flow declined 15.9% to $28.57 million. MRCY ended the fourth quarter with $214.31 million in cash and cash equivalents, down from $331.8 million in the third quarter. Long-term debt declined to $441.5 million from $591.5 million after the company made a $150 million payment against its revolving credit facility. For fiscal 2027, MRCY expects revenues to approach $1.1 billion, with growth approaching double digits year over year. Adjusted EBITDA is expected to approach $200 million, with the margin in the high teens. Fiscal first-quarter revenues are expected to grow at a high-single-digit rate year over year. MRCY currently carries a Zacks Rank #3 (Hold).ATI Inc ATI, AAR AIR and Astronics ATRO are some better-ranked stocks that investors can consider in the broader Zacks Aerospace sector. ATI Inc, AAR and Astronics sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Shares of ATI Inc have surged 97.3% in the year-to-date period. The Zacks Consensus Estimate for ATI Inc’s 2026 EPS is pegged at $4.81 and indicating an improvement of 48.46% year over year.Shares of AAR have surged 80% in the year-to-date period. The Zacks Consensus Estimate for AAR 2026 EPS is pegged at $5.92 and indicating an improvement of 17.23% year over year. Shares of Astronic have surged 90.5% in the year-to-date period.The Zacks Consensus Estimate for Astronics 2026 EPS is pegged at $2.55 and indicating an improvement of 52.69% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mercury Systems Inc (MRCY) : Free Stock Analysis Report ATI Inc. (ATI) : Free Stock Analysis Report AAR Corp. (AIR) : Free Stock Analysis Report Astronics Corporation (ATRO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Leidos Holdings, Inc. LDOS reported second-quarter 2026 non-GAAP earnings of $3.26 per share, beating the Zacks Consensus Estimate of $2.90 by 12.4%. Earnings increased 1.6% from $3.21 in the year-ago quarter.On a GAAP basis, earnings per share were $2.81, down from $3.01 a year ago. Management attributed the year-over-year decline in GAAP results to discrete costs tied to the Entrust acquisition and the pending joint venture involving security-related businesses. Total revenues came in at $4.56 billion, up 7.2% year over year and above the Zacks Consensus Estimate of $4.36 billion by 4.5%. Organic revenues increased 3.9% to $4.41 billion.The company said revenues grew on higher customer demand for defense technology products, energy and air traffic management solutions, and intelligence mission support. Acquisition and divestiture revenues totaled $150 million compared with $9 million in the prior-year quarter.Demand remained solid in the quarter. Net bookings totaled $4.9 billion, translating into a book-to-bill ratio of 1.1. The trailing-12-month book-to-bill ratio was also 1.1, supporting year-over-year growth in both total and funded backlog. Leidos Holdings, Inc. price-consensus-eps-surprise-chart | Leidos Holdings, Inc. Quote Backlog at quarter-end was $48.71 billion, including $10.22 billion funded and $38.49 billion unfunded. Total backlog increased 5% year over year, while funded backlog jumped 44%.By segment, Intelligence & Digital backlog totaled $18.41 billion, Health was $6.61 billion, Homeland was $9.93 billion and Defense was $13.76 billion. Backlog as of July 3, 2026, included $371 million acquired through the Entrust transaction within the Homeland segment. Cost of revenues totaled $3.74 billion compared with $3.47 billion in the prior-year quarter. Selling, general and administrative expenses increased to $283 million from $217 million, while acquisition, integration and restructuring costs rose to $27 million from $2 million.Operating income was $514 million, down from $571 million in the year-ago period. The operating margin contracted to 11.3% from 13.4%. Interest expense increased to $69 million from $55 million.Adjusted EBITDA declined to $631 million from $647 million. The adjusted EBITDA margin was 13.8% compared with 15.2% a year ago. The prior-year quarter benefited from several one-time, non-operational gains, including a $25 million insurance reimbursement for legal costs. Intelligence & Digital revenues rose to $1.50 billion from $1.41 billion, supported by recent contract awards and higher Intelligence Community mission-support volumes. The segment also included $9 million of revenues from Kudu Dynamics. Non-GAAP operating margin remained unchanged at 10.1%.Health revenues declined to $1.09 billion from $1.18 billion, primarily due to lower medical disability examination volumes. Non-GAAP operating margin decreased to 23.8% from 26.3%.Homeland revenues increased to $1.02 billion from $771 million, driven by continued demand in the Air Traffic and Energy businesses. Results included $141 million from Entrust. Non-GAAP operating margin improved to 12.1% from 9.3% on a better mix of security products, improved program performance and lower indirect expenses.Defense revenues were $955 million compared with $899 million a year ago, reflecting increased demand for several defense technology product lines. Non-GAAP operating margin was 9.9% compared with 10% in the prior-year period. Cash and cash equivalents were $748 million at quarter-end compared with $1.11 billion as of Jan. 2, 2026. Long-term debt, net of the current portion, increased to $6.01 billion from $4.63 billion over the same period.Net cash provided by operating activities totaled $793 million for the quarter, up from $486 million in the prior-year period.Leidos returned $127 million to shareholders, including $72 million in share repurchases and $55 million in dividend payments. Leidos raised its 2026 revenue outlook to $18.20-$18.40 billion from the prior range of $18.00-$18.40 billion. The Zacks Consensus Estimate for revenues is pegged at $18.12 billion, which is below the company’s guided range.Non-GAAP earnings are now projected at $12.20-$12.50 per share compared with the previous range of $12.10-$12.50. The Zacks Consensus Estimate for earnings is pegged at $12.30 per share, which lies below the midpoint of the company’s guided range.The company also raised its cash flows provided by operating activities outlook to approximately $1.85 billion from approximately $1.80 billion. Leidos Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Teledyne Technologies Inc. TDY reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.Total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter.Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.NOC’s total sales of $10.88 billion in the second quarter beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.AAR Corp. AIR reported fourth-quarter fiscal 2026 adjusted earnings of $1.53 per share, which topped the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line also improved 31.9% from the year-ago quarter’s level of $1.16.In the fourth quarter, AAR generated net sales of $928 million. The reported figure beat the Zacks Consensus Estimate of $892 million by 4%. The figure also increased 23% from $754.5 million recorded in the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report AAR Corp. (AIR) : Free Stock Analysis Report Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Hexcel Corporation HXL reported second-quarter 2026 adjusted earnings of 66 cents per share, which improved 32% from the year-ago quarter’s figure of 50 cents. The bottom line also surpassed the Zacks Consensus Estimate of 56 cents by 17.9%.The company reported GAAP earnings of 64 cents per share, which surpassed the year-ago quarter’s earnings of 17 cents. The company’s net sales totaled $529.3 million, which beat the Zacks Consensus Estimate of $522 million by 1.5%. The top line also witnessed an improvement of 8% from the year-ago quarter’s figure of $489.9 million. Hexcel Corporation price-consensus-eps-surprise-chart | Hexcel Corporation Quote Hexcel's gross margin was 26.1%, which increased 330 basis points from the prior-year quarter. The improvement can be attributed to favorable cost leverage driven by higher sales.Selling, general and administrative expenses increased 9.8% year over year to $47.2 million.Meanwhile, research and development expenses rose 21% year over year to $17.3 million.HXL’s adjusted operating income was $72.6 million compared with $30 million in the year-ago period. Commercial Aerospace: Net sales increased 18.3% year over year to $346.6 million, driven by sales growth from Airbus A350, as well as Boeing 787 programs. This market contributed 66% to total revenues in the first half of 2026.Defense, Space & Other: Net sales decreased 7.2% year over year to $182.7 million due to the divestment of the Austrian-based industrial business. This market contributed 34% to total revenues in the first half of 2026. As of June 30, 2026, Hexcel’s cash and cash equivalents were $62.2 million compared with $71 million as of Dec. 31, 2025.The company’s long-term debt totaled $959.4 million as of June 30, 2026, down from $993 million as of 2025-end.HXL’s cash flow from operating activities was $96.7 million against a cash outflow of $5.2 million in the prior year. Hexcel expects to generate sales in the range of $2.03-$2.13 billion for 2026. The Zacks Consensus Estimate is pegged at $2.08 billion, which lies above the midpoint of the company’s sales guidance.HXL also expects its adjusted earnings per share to be in the range of $2.30-$2.40 for 2026. The Zacks Consensus Estimate is currently pegged at $2.26 per share, which is below the company’s guided range.Hexcel expects to generate a free cash flow of more than $195 million in 2026. It also expects capital expenditure to be less than $100 million. Hexcel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Teledyne Technologies Inc. TDY reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.Total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter.Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.NOC’s total sales of $10.88 billion in the second quarter beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.AAR Corp. AIR reported fourth-quarter fiscal 2026 adjusted earnings of $1.53 per share, which topped the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line also improved 31.9% from the year-ago quarter’s level of $1.16.In the fourth quarter, AAR generated net sales of $928 million. The reported figure beat the Zacks Consensus Estimate of $892 million by 4%. The figure also increased 23% from $754.5 million recorded in the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hexcel Corporation (HXL) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report AAR Corp. (AIR) : Free Stock Analysis Report Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Huntington Ingalls Industries, Inc. HII reported second-quarter 2026 earnings of $5.27 per share, up 36.5% year over year and 39.1% above the Zacks Consensus Estimate of $3.79.Revenues rose 10.9% to $3.42 billion and beat the consensus mark of $3.14 billion by 8.9%. Higher aircraft carrier, submarine and amphibious assault ship volumes drove growth.New contract awards totaled $6.7 billion, lifting backlog to $57.3 billion. Huntington Ingalls reported segmental operating income of $224 million compared with $172 million in the second quarter of 2026. The segmental operating margin expanded 100 basis points from the prior-year figure to 5.6%. Huntington Ingalls Industries, Inc. price-consensus-eps-surprise-chart | Huntington Ingalls Industries, Inc. Quote Newport News Shipbuilding remained the largest revenue contributor. Revenues increased to $1.85 billion from $1.60 billion, driven by higher aircraft carrier and submarine volumes. Segment operating income rose to $111 million from $82 million, while margin improved to 6% from 5.1% on contract adjustments, incentives and stronger volumes.Ingalls Shipbuilding revenues advanced to $845 million from $724 million, primarily due to higher amphibious assault ship volumes. Segment operating income increased to $58 million from $54 million, though margin declined to 6.9% from 7.5%.Mission Technologies revenues fell to $760 million from $791 million. Lower All-Domain Operations and Global Security volumes more than offset growth in Warfare Systems and Unmanned Systems. Segment operating income improved to $55 million from $36 million, while margin expanded to 7.2% from 4.6% on higher equity income from nuclear and environmental joint ventures. Cash flow remained pressured in the second quarter. Net cash used in operating activities was $31 million against net cash provided by operating activities of $823 million in the year-ago quarter. Free cash flow was negative $150 million against positive $730 million a year earlier. Net capital expenditures totaled $119 million in the quarter. On capital deployment, HII paid $55 million in dividends and did not repurchase shares during the quarter. The company ended June 2026 with $12 million in cash and cash equivalents and $1.7 billion in liquidity. Management reaffirmed its full-year expectations and maintained its medium-term growth framework. For 2026, HII continues to project shipbuilding revenues of $10.20-$10.40 billion with a shipbuilding operating margin of 6.0-6.5%.Mission Technologies revenues are still expected at $3.0-$3.2 billion, with segment operating margin around 5% and EBITDA margin of 8.4-8.6%.The company also reiterated free cash flow guidance of $500-$600 million and capital expenditures of 4-5% of sales. Huntington Ingalls currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Teledyne Technologies Inc. TDY reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.Total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter.Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.NOC’s total sales of $10.88 billion in the second quarter beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.AAR Corp. AIR reported fourth-quarter fiscal 2026 adjusted earnings of $1.53 per share, which topped the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line also improved 31.9% from the year-ago quarter’s level of $1.16.In the fourth quarter, AAR generated net sales of $928 million. The reported figure beat the Zacks Consensus Estimate of $892 million by 4%. The figure also increased 23% from $754.5 million recorded in the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Huntington Ingalls Industries, Inc. (HII) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report AAR Corp. (AIR) : Free Stock Analysis Report Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. AAR (AIR) is back in focus after reporting fourth quarter and full year 2026 results, with sales of $928 million in the quarter and $3.31 billion for the year, alongside higher earnings per share. See our latest analysis for AAR. AAR’s latest earnings and recent shelf registration filing come after a strong year for investors, with the share price up 52.81% year to date and a 1 year total shareholder return of 68.74%. Shorter term momentum has cooled, with the 1 month share price return down 9.84%. If you are looking beyond AAR for other ideas in industrial and infrastructure themes, this is a good moment to see what stands out in the 35 power grid technology and infrastructure stocks AAR has already rewarded shareholders with strong gains, yet the recent pullback and fresh results put the focus back on fundamentals, on how much of the story is already reflected in the price, and on what the current valuation really implies. The most followed narrative puts AAR’s fair value at $137, compared with a last close of $129.05, which naturally raises questions about what is built into that gap. Read the complete narrative. Want to understand why this narrative leans toward a higher fair value for AAR? The core assumptions blend steady revenue compounding, firmer margins, and a richer future earnings multiple. The interesting part is how those three ingredients interact over time, not any one in isolation. Result: Fair Value of $137 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the AAR story still faces real pressure points, including potential margin strain if original equipment manufacturers push harder into aftermarket services and any missteps in scaling its Trax software platform. Find out about the key risks to this AAR narrative. The most popular AAR narrative leans on earnings and multiples, but the SWS DCF model paints a different picture. On that approach, AAR at $129.05 is above an estimated future cash flow value of $106.35, which points to the stock looking overvalued on a pure cash flow basis. That kind of gap can matter, because it implies less room for error if cash generation falls short of expectations or discount rates shift. It leaves you with a simple question: should you lean more on the cash flow math or on the earnings and narrative view? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out AAR for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 48 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Trying to balance the optimism and the risks around AAR? Review the data and recent results carefully, then consider the 4 key rewards and 1 important warning sign Do not stop with AAR. Broaden your watchlist now so you are not looking back later wishing you had acted when the data was right in front of you. Spot potential value plays early by scanning 48 high quality undervalued stocks that pair quality fundamentals with pricing that may not fully reflect their strengths. Strengthen your income foundation by reviewing 9 dividend fortresses that combine higher yields with business profiles focused on sustaining payouts. Reduce portfolio stress by focusing on 78 resilient stocks with low risk scores screened for resilience and lower overall risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AIR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

AAR Corp. recently reported past fourth-quarter and full-year 2026 results showing higher sales and net income, completed a US$107.54 million buyback of 2,429,700 shares, and filed an omnibus shelf registration covering multiple types of securities. The combination of stronger earnings per share and full utilization of the 2021 repurchase program, alongside fresh financing flexibility via the shelf registration, reshapes how investors may view AAR’s capital allocation and future funding options. We’ll now examine how AAR’s stronger quarterly and annual earnings performance affects the previously outlined investment narrative and its underlying assumptions. Explore 26 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. To own AAR, you need to believe its mix of MRO, parts distribution and software can stay relevant as airlines and governments demand reliable, cost-efficient support. The latest earnings strength supports that view in the near term, while the biggest risk remains how quickly OEMs and new technologies could squeeze independent providers like AAR, which this news does not materially change. The most relevant update here is AAR’s strong fourth quarter and full year 2026 earnings, with higher sales and earnings per share from continuing operations. That operating performance frames how investors might weigh the completed US$107.54 million buyback and new omnibus shelf registration against existing catalysts such as ramping MRO capacity and Trax’s software growth potential. Yet beneath the strong recent numbers, investors should still be aware of how rising OEM aftermarket competition could... Read the full narrative on AAR (it's free!) AAR's narrative projects $4.0 billion revenue and $250.8 million earnings by 2029. Uncover how AAR's forecasts yield a $137.00 fair value, a 6% upside to its current price. Three fair value estimates from the Simply Wall St Community span roughly US$76.69 to US$137, showing how far apart individual views can be. When you set those against AAR’s stronger recent earnings and expanded financing flexibility, it underscores why you may want to explore several different opinions on how sustainable that performance really is. Explore 3 other fair value estimates on AAR - why the stock might be worth 41% less than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your AAR research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Our free AAR research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate AAR's overall financial health at a glance. Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped: Capitalize on the AI infrastructure supercycle with our selection of the 55 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. Find 49 companies with promising cash flow potential yet trading below their fair value. We've uncovered the 9 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AIR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Lockheed Martin Corporation LMT reported second-quarter 2026 adjusted earnings of $7.94 per share, which beat the Zacks Consensus Estimate of $7.22 by 10%. The bottom line increased 8.9% from the year-ago quarter's reported figure of $7.29. Net sales were $20.06 billion, which beat the Zacks Consensus Estimate of $19.34 billion by 3.7%. The top line inched up 10.5% from $18.16 billion reported in the year-ago quarter.The year-over-year improvement was driven by higher sales growth registered by LMT’s business segments. Lockheed Martin Corporation price-consensus-eps-surprise-chart | Lockheed Martin Corporation Quote LMT’s backlog as of June 28, 2026, was $230.42 billion compared with $193.62 billion as of Dec. 31, 2025.The Aeronautics segment accounted for $54.36 billion of the total backlog amount, while the Missiles and Fire Control segment contributed $87.88 billion. The Rotary and Mission Systems segment contributed $48.45 billion, while the Space unit accounted for $39.72 billion. Aeronautics: Sales increased 9.3% year over year to $8.11 billion. The increase was primarily driven by higher sales from the F 35 program.The segment reported an operating profit of $760 million against the operating loss of $98 million in the year-ago quarter. The operating margin expanded 1070 basis points (bps) to 9.4%.Missiles and Fire Control: Quarterly sales improved a solid 19.5% year over year to $4.10 billion. This was on account of higher sales from integrated air and missile defense programs, as well as tactical and strike missile programs.The segment’s operating profit increased to $594 million from $479 million in the prior-year quarter. The operating margin expanded 50 bps to 14.5%.Space: The top line improved 5.7% year over year to $3.50 billion, driven by higher sales from strategic and missile defense programs.The segment’s operating profit increased to $371 million. The operating margin contracted 30 bps to 10.6%.Rotary and Mission Systems: Quarterly revenues increased 7.8% to $4.35 billion on a year-over-year basis, driven by higher sales of Sikorsky helicopter programs.The segment reported an operating profit of $437 million against the operating loss of $172 million in the second quarter of 2025. The operating margin contracted 1430 bps to 10%. Lockheed’s cash and cash equivalents totaled $3.79 billion as of June 28, 2026, compared with $4.12 billion at the end of 2025.Cash from operating activities amounted to $3.46 billion as of June 28, 2026, compared with $1.61 billion a year ago.Long-term debt as of June 28, 2026, totaled $20.54 billion compared with $20.53 billion at the end of 2025. Lockheed expects to generate sales in the range of $79.75-$81.75 billion in 2026 compared with its previous guidance of $77.50-$80.00 billion. The Zacks Consensus Estimate is pegged at $79.16 billion, which lies above the midpoint of the company’s sales guidance.LMT expects to generate adjusted EPS in the range of $29.95-$30.65 compared with its previous guidance of $29.35-$30.25. The consensus estimate is currently pegged at $29.97 per share, which lies above the midpoint of the company’s guidance.Lockheed expects to generate cash from operations in the range of $9.20-$9.40 billion.It expects capital expenditure of approximately $2.00-$2.40 billion.Lockheed expects to generate a free cash flow of approximately $7.00-$7.20 billion. LMT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Teledyne Technologies Inc. TDY reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.Total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter.Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.NOC’s total sales of $10.88 billion in the second quarter beat the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.AAR Corp. AIR reported fourth-quarter fiscal 2026 adjusted earnings of $1.53 per share, which topped the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line also improved 31.9% from the year-ago quarter’s level of $1.16.In the fourth quarter, AAR generated net sales of $928 million. The reported figure beat the Zacks Consensus Estimate of $892 million by 4%. The figure also increased 23% from $754.5 million recorded in the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report AAR Corp. (AIR) : Free Stock Analysis Report Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

AAR Corp. AIR reported fourth-quarter fiscal 2026 adjusted earnings of $1.53 per share, which topped the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line also improved 31.9% from the year-ago quarter’s level of $1.16.The company reported GAAP earnings of $1.27 per share compared with 95 cents in the prior-year quarter.The year-over-year improvement in the bottom line can be attributed to strong sales growth.AIR reported fiscal 2026 adjusted earnings of $5.05 per share, which were higher than the year-ago figure of $3.91, reflecting the impact of improved operating efficiency on higher sales volumes. In the quarter under review, AAR generated net sales of $928 million. The reported figure beat the Zacks Consensus Estimate of $892 million by 4%. The figure also increased 23% from $754.5 million recorded in the year-ago quarter.The year-over-year improvement can be attributed to the double-digit growth across new parts Distribution within the company's Parts Supply segment and the impact of AIR’s acquisitions of HAECO Americas and ADI.The company reported total revenues of $3.31 billion in fiscal 2026, which were higher than $2.78 billion in fiscal 2025. AAR Corp. price-consensus-eps-surprise-chart | AAR Corp. Quote Parts Supply sales surged 38.7% to $423.8 million from $305.5 million in the prior-year quarter. Organic growth in new-parts distribution was 19%, with commercial distribution rising 28% organically and government distribution increasing 7%.Repair, Engineering, and Software sales jumped 35.1% to $314.4 million. Growth reflected the HAECO Americas acquisition, record component maintenance sales, higher airframe maintenance volumes and capacity, and increased recurring revenues at Trax.Government Solutions sales declined 8% to $130.2 million due to lower activity under the Worldwide Aviation Support Services program.Legacy Commercial Programs recorded sales of $59.6 million, down 20.3% year over year. AIR’s adjusted operating income increased 27.4% to $98 million, while adjusted operating margin improved 10 basis points to 10.6%.Selling, general and administrative expenses amounted to $99.6 million compared with $77.4 million a year ago.Net interest expenses for the quarter totaled $16.3 million compared with $18.4 million in the year-ago period. As of May 31, 2026, AAR’s cash and cash equivalents amounted to $84 million compared with $96.5 million as of May 31, 2025.The company’s long-term debt totaled $893.9 million as of May 31, 2026, down from $968 million as of May 31, 2025.In fiscal 2026, net cash provided from operating activities was $98.7 million compared with net cash flow of $36.1 million in the year-ago period. AAR currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Lockheed Martin Corporation LMT is set to report second-quarter 2026 earnings on July 23, before market open.The consensus estimate for LMT’s earnings is pegged at $7.22 per share. The consensus estimate for its sales is pegged at $19.52 billion, indicating year-over-year growth of 7.5%.The Boeing Company BA is set to report second-quarter 2026 earnings on July 28, before market open.The Zacks Consensus Estimate for BA’s loss stands at 24 cents per share. The consensus estimate for its sales is pegged at $24.03 billion, calling for year-over-year growth of 5.7%.General Dynamics Corporation GD is set to report second-quarter 2026 results on July 29, before market open.The Zacks Consensus Estimate for GD’s earnings is pegged at $3.93 per share. The consensus mark for its sales is pegged at $13.49 billion, suggesting a year-over-year rise of 3.4%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AAR Corp. (AIR) : Free Stock Analysis Report The Boeing Company (BA) : Free Stock Analysis Report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report General Dynamics Corporation (GD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research